3. The NSI concept was introduced in the late 1980s (Freeman 1987:Dosi et
al., 1988). According to Edquist (2005), Freeman was the first to use the term
‘national systems of innovation’ in published form (Freeman, 1987).
The present systems of innovation can be described within a number of
parameters apart from national level including regional sectoral and
technological depending on the chosen level of analysis (Balzat and Hanusch
2004).
Although national system of innovation is only one of several possible
specification of the generic system innovation concept, its certainly remains
one of the most relevant (Edquist 1997).
National System of Innovation (NSI)
4. All important economic, social, political, organisational,
institutional and other factors that influence the
development diffusion and use of Innovation (Edquist,
2005: 182).
SI is comprised of Constituents (Edquist, 2005: 182):
1) Components
2) Relations among the components
What is NSI?
5. Organisations:
Formal structures that are consciously created and have an explicit
purpose. They are players or actors (Edquist, 2005: 188).
Example; universities, firms, venture capital organizations, public
agencies.
Institutions:
Sets of common habits, norms, routines, established practices, rules, or
laws that regulate the relations and interactions between individuals,
groups, and organizations (Edquist, 2005: 188).
Example; patent laws (Intellectual Property), rules and norms influencing
the relation between the universities and firms.
Main Components of SI
6. Authors Definitions
Freeman (1987,
1988)
National systems of innovation refer to the network of institutions in public and
private sectors whose activities and interactions initiate, import, modify and
diffuse new technologies.
Lundvall (1988,
1992)
National systems of innovation refer to the institutions, economic agents and
relationships, which interact in the production, diffusion and use of new
economic knowledge.
Nelson (1993) National systems of innovation refer to the institutional set-up of a national
economy emphasising the industrial structure and the organisation of the
R&D system.
Patel and Pavitt
(1994)
National systems of innovation refer to national institutions, their incentive
structures and their competencies that determine the rate and direction of
technological learning.
Metcalfe (1995) National systems of innovation refers to set of distinct institutions which jointly
and individually contribute to the development and diffusion of new
technologies and which provide the framework within which governments
form and implement policies to influence the innovation process.
Edquist (1997) National systems of innovation includes “all important economic, social, political,
organisational, institutional and other factors that influence the
development, diffusion and use of innovation”
OECD (1997) National systems of innovation refer to a complex set of relationships among
actors producing, distributing and applying various kinds of knowledge.
Definition of NSI among different authors
7. Activities in NSI
1. Provision of R&D, creating new knowledge, primarily in engineering,
medicine and the natural sciences.
2. Competence building (provision of education and training, creation of
human capital, production and reproduction of skills, individual learning) in
the labour force to be used in innovation and R&D activities.
3. Formation of new product markets.
8. 4. Articulation of quality requirements emanating from the demand side with
regard to new products.
5. Creating and changing the organisations required for the development of
new fields of innovation, for instance, enhancing entrepreneurship to create
new firms and entrepreneurship to diversify existing firms, creating new
research organisations, policy agencies, and so on.
Activities in NSI (cont’d)
9. Activities in NSI (cont’d)
6. Networking through markets and other mechanisms, including
interactive learning among different organisations (potentially) involved
in the innovation processes. This implies integrating new knowledge
elements developed in different spheres of the SI and coming from
outside with elements already available in the innovating firms.
7. Creating and changing institutions - for instance, intellectual property
rights laws, tax laws, environment and safety regulations and R&D
investment routines - that influence innovating organisations and
innovation processes by providing incentives or obstacles to innovation.
10. Activities in NSI (cont’d)
8. Incubating activities - for instance, providing access to facilities,
administrative support, and so on for new innovating efforts.
9. Financing of innovation processes and other activities that can facilitate
the commercialisation of knowledge and its adoption.
10. Provision of consultancy services of relevance for innovation processes,
for instance, technology transfer, commercial information, and legal
advice.
11. .The constituents of Malaysian NSI?
.The key characteristics of Malaysia NSI?
Malaysian NSI
